Friday, June 25, 2004

Profitable I. can't be bought

According to Alexander Kandybin and Martin Kihn of BAH in S+B, the solution to I. anemia is not to boost incremental spending, but to raise the effectiveness of base spending — to increase the return on I. investment, lifting the firm’s “ROI.” In their interesting article: The Innovator's Prescription: Raising Your Return on I. Investment, they identify three principles to improve the return on I. investment: the three pillars of I.
1. Understand Your I. Effectiveness Curve,
2. Master the Entire I. Value Chain, and
3. Don’t Do It All Yourself.
Would you agree that the main reason for I. anemia can be found in poor ROI on existing I. investments? Or do you believe there are other reasons for it?